Perpetual DEXs are expanding rapidly, as shown in CoinGecko's 2024 report, surprising many.
What is Perpetual Trading?
Perpetual trading uses perpetual futures contracts, enabling trading of assets such as Bitcoin or Ethereum without ownership. Unlike regular futures contracts, these have no expiration date. Cryptocurrency perpetual trading has gained popularity due to its flexibility and liquidity, enabling faster trade execution.
Benefits of Perpetual Trading
Perpetual trading offers key advantages such as no contract expiration and a funding rate mechanism aligning future prices with actual market prices, maintaining market balance. Leverage is also available, allowing traders to handle larger positions with less capital, increasing both potential profits and risks.
Current State of Perpetual DEX
According to CoinGecko's 2024 report, trading volume on top 10 perpetual DEX reached $1.5 trillion, a 138% increase from the previous year. Open interest also soared, hitting $6.7 billion by the end of December, showing a shift towards decentralized trading due to enhanced transparency and user control.
The growth of perpetual DEXs highlights their importance as the future of crypto trading, offering traders transparency, control, and liquidity.
